Tips for Finding the Right Business Insurance Policy
By Space Coast Daily // October 17, 2021
As a business owner, you will need to learn the best ways to manage risk. To support this effort, you need to have the right insurance for your business.
With the right business insurance, you can drive your startup into a success. But, looking for the right policy can be overwhelming. These tips can help you get started.
Know Your Options
Your insurance needs will vary depending on several factors. These factors include your industry and business assets.
Below are some of the most common business insurance policies:
Professional Liability Insurance
Professional liability insurance is a common option among businesses that provide professional services. It is also known as errors and omissions insurance or E&O. This covers lawsuits over negligence, work mistakes, and oversights.
General Liability Insurance
This insurance covers liability claims, third-party injuries, or third-party property damage. It also protects against defamation or copyright infringement.
Commercial Property Insurance
This insurance covers the replacement of stolen, lost, or damaged business property. It includes your office or workspace, furnishings, inventory, and equipment.
Business Owner’s Policy (BOP)
This insurance is a combination of general liability insurance and commercial property insurance. Generally, a BOP is more affordable than buying both insurance options.
Business Interruption Insurance
This insurance covers operating costs if your business closes due to a storm or other events.
Cyber Liability Insurance
This policy covers the costs of a data breach or other cyber incident at your business. It also covers the costs if you get sued over your client’s data breach.
Workers’ Compensation Insurance
This kind of insurance covers medical expenses and lost wages for work-related injuries. It also pays for employee lawsuits over employer negligence.
In Australia, over 560,000 people have had work-related injuries in one year. The numbers highlight the importance of having this type of insurance for employers.
Commercial Auto Insurance
This type of insurance pays medical and legal bills if your vehicle causes an accident. For the policy to cover the accident, you must use the car for your business.
Hired and Non-owned Auto Insurance (HNOA)
This insurance pays for accidents involving a personal, rental, or leased vehicle. You must use the car for your business for the insurance to cover the accident.
Learn What’s Required by Law
In Australia, the law requires business owners to have the insurance below:
- Workers’ compensation insurance if you have employees.
- Third-party personal injury insurance if you own a motor vehicle.
- For certain businesses, public liability insurance covers third-party death or injury.
Understand the Industry’s Risks
The risks you will want to mitigate may vary depending on your industry.
For example, if you own a restaurant, you will worry if a customer feels sick after eating a meal. Meanwhile, if you are an accountant, you will get upset if you make mistakes upon filing a customer’s tax return.
Professional liability insurance can protect professionals like accountants from lawsuits related to errors. Meanwhile, product liability insurance can cover the bills for the restaurant owner.
By evaluating the risks, you will know the insurance to protect against them.
Review Your Coverage
If you already have insurance, review your coverage before renewing your insurance policies. You need to take into account your changing needs when you renew your policies.
If your business volumes rose, enhance the coverage to protect against loss of income. When you get new business assets, you will need to increase the insurance coverage.
Review the needs of your business and your current coverage. This way, you will know the insurance coverage you need. It will also help you manage the cost of your insurance.
Choose Trusted Insurance Providers
One way to ensure you have good insurance coverage is by buying from an insurance carrier you can trust.
Check company ratings and look for reputable insurance carriers. Look for a company that can provide:
- Quality and reliable coverage
- Fast payouts
- Consistent terms
BrokerLink is an insurance firm that can help your business. The firm can make buying insurance easier by showing you the best options available.
Determine the Factors that Will Affect Rates
After evaluating risks, you need to know what can affect insurance rates.
Your company size and assets are some of the factors that can affect the quote. Your location may also affect the premium you pay for coverage.
While some of these factors are beyond your control, you can do these tips below to save money:
- Do not allow your insurance to lapse as this may cause your premiums to increase.
- Take precautionary measures, like fire suppression systems and security alarms. These can cut down commercial property insurance costs.
- Make sure to have a safe work environment. It can reduce workers’ compensation premiums.
- Do not hire people with poor driving records. Choose drivers with a good driving history as they can help keep rates lower.
Understand Your Insurance Policy
Policies vary depending on your insurance provider. Each policy has its limits, exclusions, premiums, and deductibles.
Before buying, make sure you understand the coverage and exclusions.
As a busy business owner, you may feel that you do not have the time to research policy details. But, reading a policy can help assure you do not have any gaps in coverage.
These are some of the tips to help you choose business insurance. Keep these in mind to get the best insurance for your business.